NextEra Energy (NEE) and Dominion Energy (D) are some of the fastest-growing utilities in the country. Their superior earnings growth is expected to drive their dividend growth for the next few years. We’ll analyze their dividend profiles in this series. We’ll see which company could be strong going forward.
Dominion Energy is trading at a dividend yield of 4.5%, which is significantly higher than utilities’ (XLU) average of 3.3%. NextEra Energy stock yields 2.4%—one of the lowest yields in the sector.
Dominion Energy’s dividend yield peaked at its five-year high during the third quarter. NextEra Energy’s yield traded below peers’ average in the past five years.
On October 31, Dominion Energy (D), the third-largest utility by market cap, declared a dividend per share of $0.84 for the fourth quarter. The ex-dividend date is December 6. The dividend will be paid on December 20. The company is expected to pay annualized dividends of $3.34 per share in 2018—almost a 10% increase from its dividends last year.
NextEra Energy, the biggest utility by market cap, is expected to pay $1.11 per share for the fourth quarter. The ex-dividend date is November 29. The dividend will be paid on December 17. NextEra Energy’s annualized dividend for 2018 is $4.44 per share—almost a 13% increase from last year.
Southern Company (SO) and Duke Energy (DUK) yield 5.1% and 4.2%, respectively.
Next, we’ll discuss these utilities’ dividend growth.